RO water, sewer rates going up

 Red Oak residents will see an uptick in their water and sewer rates this spring. 

Red Oak city manager Brad Wright said the water rate increase has been budgeted for a 5 percent increase, while the sewer rate will increase by 10 percent. 

Wright said the water rate increase is simply needed to keep pace with the ever-increasing cost of doing business. 

“In addition to the cost of normal operations, the water department has water main projects that are scheduled to be completed in the near future. The department is also in the early stages of evaluating a project that will replace old water meters throughout the community with new meters that can be read remotely and are much more accurate,” said Wright. “The sewer rate is being increased in order to satisfy the requirements of the revenue bonds that were sold to finance the sewer plant renovations that were completed a few years ago. To date, payments on those revenue bonds have been partially funded via funds on hand in the sewer utility. This increase should generate revenue capable of covering the annual operating expenses of the utility as well as covering the revenue bond payment.”

While the increase in water rates is not over yet, Wright said the city is doing the best it can to raise the rates gradually. 

“The city’s philosophy regarding any necessary rate increase is that it is much easier for the customers to accept if it is staggered and increased slowly over time. We try very hard to avoid large spikes in fees that would create a financial burden to the residents.”

While residents will be paying a little more this spring, Wright said their own rates are still reasonable when compared to other communities in the area. 

“Red Oak’s rates are extremely favorable by comparison to other communities. Even with the rate increases, we are now looking at, we will still be very competitive,” said Wright. 

The proposed new rate for a two-person household using 3,750 gallons of water is a combined total of $37.25 for water and sewer. The prior combined rate was $35. 

Comparisons

Based on rates in other cities in April, 2016, Red Oak’s proposed rate remains the lowest on the list. Combined totals were $55.06 in Glenwood, $56.35 in Atlantic, $60 in Clarinda, $78.88 in Shenandoah, and $38.18 in Creston. 

The rate for a four-person household using 7,500 gallons was lower that the 2016 rates of other communities. Red Oak’s combined total would increase from $57.40 to $61, compared to $98.98 in Glenwood, $92.35 in Atlantic, $120 in Clarinda, $154.73 in Shenandoah, and $70.58 in Creston. 

For business customers, the trend continues. Proposed combined rate increases for Red Oak businesses using 50,000 gallons of water are $315.48, from the prior rate of $296.31. Creston’s rate was $402.74, Shenandoah’s was $1,014.26, Clarinda’s was $800, Atlantic’s was $489.15, and Glenwood’s was $596.65. 

Red Oak businesses using 150,000 gallons of water will see a rate increase to $875.50. The prior rate was $819. Glenwood’s rate is $1,767.65, Atlantic’s is $1,381.15, Clarinda’s is $2,400, Shenandoah’s is $3,037.03, and Creston’s rate is $1,106.78.